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LEADING INDICATORS

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series of indicators that tend to predict future changes in economic activity; officially called Composite Index of 11 Leading Indicators. This series is published monthly by the U.S. Department of Commerce and includes average work week, average weekly initial claims, index of net business formation, new orders, and stock prices. The index of leading indicators, the components of which are adjusted for inflation, has an excellent track record of forecasting ups and downs in the business cycle.